Research: how much more is a market actor willing to pay for biobased products?

GreenPremium price is the additional price a market actor is willing to pay for the additional emotional and/or strategic performance of the product the buyer expects to get when choosing the bio-based alternative compared to the price for the conventional counterpart.
The range of reported GreenPremium ranges from a 10% to a 300% premium. For the end consumer the range of GreenPremium prices goes from 0% (car, cosmetics, bottle) to 25% (wall plug, toy) with, in the middle, a 10% GreenPremium for organic food with bio-based packaging. The empirical data shows that in all cases the GreenPremium price levels decrease along the supply chain towards the end consumer (nova-paper, May 2014).
Click here for the nova-paper (2.10 MB).

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